MBMG Butte Mine Flooding Monthly Report BMFOU Consent Decree BU-SEH Remedial Action Monitoring Program Contract No TO-35 September 2013

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MBMG Monthly Report BMFOU Consent Decree 02-35-BU-SEH Remedial Action Monitoring Program Contract No. 400022-TO-35 September 20 The Montana Bureau of Mines and Geology (MBMG) continued to perform monitoring and sampling activities for the Operable Unit, per the conditions of the 2002 Consent Decree as outlined in the Remedial Action Monitoring Program. Normal monthly activities include the monitoring of surface-water flows in the Horseshoe Bend (HSB) drainage, water-quality sampling of HSB, water-level monitoring, and report preparation. Personnel attended several meetings to discuss ongoing monitoring activities and assisted with tours for outside visitors. The MBMG discussed well completion details with Montana Resources personnel for the replacement alluvial well, LP-17R. Horseshoe Bend Monitoring Data on surface-water flow were collected at two locations within the HSB drainage area, the HSB Falls seep and the total drainage flow just upstream of the water treatment plant. The last site is referred to as the HSB (weir) drainage. Throughout the month, periodic visits were made to these sites to check staff gauge levels (flow rates) and clean the iron buildup from the HSB Falls transducer. In an attempt to mitigate the iron fouling, the transducer is being changed out each month and brought back to the lab for complete cleaning. This appears to be producing more consistent data. The installation of the non-contact system, located at the HSB weir, was completed and became operable during mid-october 2011. As part of the system upgrade, Montana Resources cleaned the sediment accumulation behind the weir plate and a new staff gauge was installed. The average flow rates for the month from the HSB sites are shown in Table 1, while a summary of average, maximum, minimum, and total flow for the HSB drainage site is attached at the end of the report (attachment 1). Graphs showing the daily average flow rates and cumulative flow rates are also attached (attachment 2). rates have declined substantially at the HSB Falls site during the past year, to levels well below those seen previously. s at other non-monitored locations appear to have increased. Montana Resources increased the amount of HSB water diverted to the leach pads, which reduces flow in this system. A major diversion occurred on September 20, 20; periodic changes in water handling continue to occur and are noticeable on this month s graph (attachment 2). Monitoring Site Monthly Avg. (gpm) Change from Previous Month (gpm) HSB Falls 48-28 HSB Drainage 2,550-908 Table 1. Monthly Average Rates and Change from Previous Month for the Horseshoe Bend Sites. East Camp Alluvial System Monitoring The East Camp alluvial groundwater monitoring system consists of the LP- and MR97-series wells located within the active mine area, plus selected AMC, GS, AMW, and BMF05-series wells. All of the wells associated with the four latter groups are located outside and to the south of the active mine area, with the exception of wells AMC-5 and AMC-15, which are within the active mine area. Table 2 summarizes the water-level changes for these alluvial wells and shows the maximum water-level increase and decrease for each group. The large water-level variations seen recently in well LP-15 are

(Continued - page 2) the result of dewatering activities undertaken by Montana Resources to lower water levels in the alluvial system. A new graph showing responses to pumping in well LP-15, and water levels for wells LP-15 and LP-16, is attached. Current and previous pumping influences are shown on the graph. Pressure transducers have been installed in wells LP-, LP-, and LP-16 to better monitor water-level fluctuations related to dewatering activities. Well Series (No. Wells) No. Wells Water Level Increased No. Wells Water Level Decreased Max. Water-Level Increase Max. Water- Level Decrease LP (14) 5 8 0.48 0.89 MR97 (4) 1 3 0.22-0.33 AMC (7) 4 2 0.43-0.22 GS (6) 6 0 0.17 AMW (2) 2 0 0.07 BMF05 (4) 2 2 0.23-0.16 Table 2. East Camp Alluvial Well Water-Level Changes. Well LP-8 remains dry, as water levels near the leach pads are below the screened interval in this well. Well LP-7, which had been dry for a number of years, currently has a water level within the screened interval, possibly a result of water-level increases due to the expansion of MR leaching operations. Well AMC-10 has been dry since its installation. The water levels in all GS-series wells and wells AMW-8, AMW-20, and BMF05-1 were influenced during late summer and fall of 20 by Butte Priority Soils dewatering activities associated with the installation of a hydrodynamic device near Texas Ave.; dewatering was completed and water levels recovered. Hydrographs for wells LP-1-LP-2, LP-4-LP-7-LP-8, LP-9-LP-10, and LP-14-LP-15-LP-16, showing the long-term trends in these wells, are attached. These wells are reflective of the general alluvial system within the active mine area, which shows greater variability, the result of historic and current mine operations and seasonal trends. Water levels in basin alluvial wells (wells outside the active mine area) increased at a majority of sites this month in response to seasonal climatic changes. A total of 20 alluvial wells within the East Camp system have been equipped with pressure transducers to record water-level changes every hour. These detailed records provide information on the daily and seasonal changes that occur within the regional groundwater system. Copies of the monthly and long-term hydrographs for each of these sites are attached. Hydrographs based upon newly installed transducers for wells LP-, LP-, and LP-16 are also attached. Influences from dewatering activities are noticeable on these graphs. The influence of irrigation wells near sites BMF05-3 and BMF05-4 during the summer and fall months is apparent on the hydrographs for these two wells. Figure 1 shows daily average water levels for wells LP-14, AMC-8, and BMF05-3. An increasing water-level trend is noticeable in wells LP-14 and AMC-8, while well BMF05-3 shows a more seasonal trend, with little net change in water level. It should be noted that water levels have steadily declined in wells LP-14 and AMC-8 for the past year. Well LP-14 is located on the southern edge of the mine property, well AMC-8 is just south of LP-14 outside the mine area, and well BMF05-3 is farther south in the basin. Well BMF05-3 is outside the area of influence of current or historic mining activity, while the other two wells have shown periodic influences from these activities.

(Continued - page 3) Figure 1. Hydrograph showing water-level elevations for alluvial wells LP-14, AMC-8, and BMF05-3. The GS-series wells are three pairs of nested wells, a shallow and a deep well, within the alluvial aquifer. Figure 2 is a hydrograph showing the water levels for wells GS-41S and GS-41D. The waterlevel changes shown on this graph are similar to those for the other two groups of nested wells. Rises in water levels from spring snowmelt and summer precipitation followed by water-level declines in the fall and winter are noticeable; water levels are just beginning their seasonal rise in these wells. Dewatering activities related to Butte Priority Soils activities near Texas Ave. influenced water levels in the GS-41, GS-44, and GS-46 series wells during late summer and fall of 20, resulting in water-level declines, and increases when pumping stopped.

(Continued - page 4) Figure 2. Hydrograph showing water-level elevations for alluvial wells GS-41S and GS-41D. East Camp Mine and Bedrock System The East Camp bedrock system consists of 6 underground mines, bedrock wells within the active mine area, and 3 bedrock wells outside the active mine area. The latter wells are located at Hebgen, Parrot, and Belmont Parks. The Berkeley Pit is also considered part of the East Camp bedrock monitoring system. The 1994 Record of Decision (ROD) and 2002 Consent Decree (CD) established the maximum level that water in the East Camp bedrock system is allowed to rise to, and is based upon a number of compliance points within that system. The compliance points are bedrock wells A, C, D-1, D-2, G, J, and Belmont well #2, plus the following mine shafts: Anselmo, Steward, Pilot Butte, Granite Mountain, Lexington, Kelley, and Continental Pit, or its monitoring well located at the Sarsfield Shaft. Under the conditions contained in the CD, the water level in the bedrock system cannot exceed the Critical Water Level (CWL) of 5,410 ft elevation at any of the compliance points, ensuring that the water level in the Berkeley Pit remains the lowest point within the East Camp bedrock system. Table 3 contains the most recent monthly water levels for selected compliance points and the Berkeley Pit, and the depth below the CWL.

(Continued - page 5) Compliance Point Monthly Water Level (ft) Depth Below CWL (ft) Anselmo Mine 5,334.80 75.20 Granite Mountain Mine 5,326.81 83.19 Pilot Butte Mine 5,336.95 73.05 Kelley Mine 5,323.27 86.73 Belmont Well #2 5,324.08 85.92 Well A 5,326.43 83.57 Well C 5,322.38 87.62 Well G 5,332.75 77.25 Berkeley Pit 5,3.59 97.41 Table 3. Selected Compliance Points Monthly Water-Level Elevation and Depth Below Critical Water Level (CWL). For the past several years, the compliance point with the highest water level has varied between the Anselmo Mine, the Pilot Butte Mine, and bedrock well G. This would be expected, as these sites are the farthest monitoring points on the west, north, and east sides of the East Camp bedrock system. Currently, the water level is highest in the Pilot Butte Mine, with the water level 73.05 ft below the CWL. Copies of water-level data and graphs from selected sites are attached. Table 4 summarizes the water-level changes for the past month within the East Camp bedrock system, along with the maximum changes within each group of monitoring sites. Monitoring Sites (No. Mines/Wells) No. Sites Water Level Increased No. Sites Water Level Decreased Max. Water-Level Increase Max. Water-Level Decrease Mine Shafts (6) 6 0 0.82 Bedrock Wells within Active Mine 0 0.63 -- Area ()** Bedrock Wells outside Active Mine Area (3) 3 0 15. **Includes Belmont Well #2; well DDH-1 plugged, no water level obtained. Table 4. East Camp Bedrock Water-Level Changes. Within the East Camp bedrock system, a total of 10 wells are equipped with pressure transducers that record hourly water-level changes. Copies of the monthly and long-term hydrographs for each site are included with this report. Figure 3 is a hydrograph showing a comparison of daily average water-level elevations for wells A, C, and G. Water levels continue an upward trend, reflecting groundwater recovery from historic dewatering associated with past mining practices.

(Continued - page 6) Figure 3. Hydrograph showing water-level elevations for bedrock wells A, C, and G. West Camp System The West Camp monitoring system consists of three underground mines: Emma, Ophir, Travona, and six monitoring wells. Table 5 summarizes the water-level changes for the past month within the West Camp bedrock system, along with the maximum changes within each group of monitoring sites. Monitoring Sites (No. Mines/Wells) Mine Shafts (3) Bedrock Wells (6) No. Sites Water Level Increased No. Sites Water Level Decreased Table 5. West Camp Bedrock Water-Level Changes. Max. Water-Level Increase Max. Water-Level Decrease 3 0 3.65 5 1 3.69-0.68 The ROD and CD established a CWL for the West Camp bedrock system of 5,435 ft, to be

(Continued - page 7) maintained at well BMF96-1D; the current water level is over 8 ft above the West Camp s compliance point (temporarily suspended for ongoing test, see discussion below). Water levels in the West Camp underground mine system are controlled by pumping groundwater from well WCP-1, which is completed in the Travona Mine 800-level workings (approx. 500 ft below ground surface). Groundwater pumping was re-started on September 17, 20; with a total quantity pumped being 4.68 acre ft. Three monitoring wells in the West Camp are equipped with pressure transducers that record water-level changes every hour: BMF96-1D, BMF96-1S, and BMF96-4. Wells BMF96-1D and BMF96-1S are located near each other, with well BMF96-1D completed in the same mine workings as WCP-1, while well BMF96-1S is completed in the shallow, weathered bedrock. Figure 4 is a hydrograph showing water levels for these two sites for March 2007 through September 20. The water-level increase seen in well BMF96-1D and several of the mine shafts during August and September 2007 was the direct result of reduced pumping rates during that period, while the October 2007 December 2008 declines are the result of increased pumping rates and seasonal recharge events. BP/ARCO adjusted pumping rates for several months to determine the optimum pumping rate for holding the water level at a safe point below the West Camp CWL. More recent changes in water levels are the result of temporary operational changes resulting from Butte Priority Soils (BPS) issues (Parrot Tailings aquifer test, Metro Storm Drain isolation tests, and BTL upgrades). Figure 4. Hydrograph showing water-level elevations for West Camp wells BMF96-1S and BMF96-1D. Additional water-level monitoring has been undertaken to monitor water-level changes within the

(Continued - page 8) mine workings and surrounding alluvial/weathered bedrock systems as a result of ongoing BPS activities. Transducers were installed in selected mine shafts and monitoring wells to document waterlevel changes resulting from those activities. Pumping in the West Camp system was temporarily suspended on July 19, 2011, resulting in water-level increases throughout the mine system. Pumping started and stopped throughout the following months as required for construction activities. Figure 5 shows water levels for the Ophir Mine, Travona Mine, and bedrock well BMF96-1D for June 2011 September 20. Well BMF96-1D is completed within the mine workings, and its water level is representative of that system. Figure 5. Water-level comparisons for the West Camp underground system. Pumping was temporarily suspended in the West Camp on July 8, 20 to allow water levels to rise as part of a review/evaluation of the West Camp CWL. More frequent water-level monitoring has been implemented to ensure water levels in the shallow alluvial system are not increasing in relation to the rising water in the mine system. Water levels have had no appreciable rise in the shallow system as a result of the ongoing test to date (fig. 6). Pumping will be restarted if the water level in wells BMF96-2 or BMF96-3 reaches an elevation of 5,465 ft. Current water levels in these wells are over 6 ft below this elevation. Groundwater pumping was re-started on September 17.

(Continued - page 9) Figure 6. Water-level comparisons for shallow West Camp groundwater monitoring sites. Outer Camp Systems The Outer Camp monitoring system consists of two underground mines and a bedrock well in the vicinity of each mine. Water levels decreased at three sites during September. The Outer Camp has no CWL or compliance monitoring points. Water levels in this area are assumed to be at or near pre-mining levels. Continuous water levels are monitored in the Tech well by a water-level transducer. In addition to the four groundwater-monitoring sites, a seep (spring), referred to as the Green Lake Seep, is monitored for the quantity of water flowing from it. The flow from this site was measured at 15 gpm. Water-Quality Sampling The monthly water sample was collected from the HSB drainage. Copies of results through July 20 are attached.

(Continued - page 10) Attachment 1 Horseshoe Bend Drainage Monthly Statistics Monthly Statistics Jan- Feb- Mar- Apr- May- Jun- July- Aug- Sept- Oct- Nov- Dec- Mean (gpm) Min (gpm) Max (gpm) Total (MG) 4320 3673 4083 3524 3885 3838 4141 3966 1986 2473 3109 4072 3715 2874 3199 2844 3270 3270 3850 3366 480 1008 1623 2310 4654 4393 4462 37 4283 4233 4332 4519 4519 3116 3703 66 193.2 153.7 176.7 152.5 173.7 166.1 185.2 177.4 88.8 110.6 4.6 182.1 Monthly Statistics Jan- Feb- Mar- Apr- May- Jun- July- Aug- Sept- Oct- Nov- Dec- Mean (gpm) Min (gpm) Max (gpm) Total (MG) 3381 3356 3189 2866 2737 3050 3322 3530 2550 2775 2459 2468 2186 1963 2582 2697 3063 2081 4900 4254 4197 3423 3448 3629 4275 5549 3173 146.3 140.4 4.2 140.6 2.4 118.8 163.0 152.8 103.0

(Continued - page 11) Attachment 2- Horseshoe Bend Drainage Graphs

(Continued - page ) September 20 Horseshoe flow rate.